How to Consolidate Your Private Student Loans
Navigating the financial world - particularly when you're focusing on your education - can be extremely frustrating. Fortunately, the private loan debt consolidation process is relatively simple and hassle-free. Students who have taken out multiple - more than one - private student loans have the ability to consolidate those loans into one complete loan. Rather than paying several lenders each month, a student who consolidates his or her loans simply pays one lender, once a month. The student enjoys lower monthly payments and more financial flexibility.
Remember that, as a rule of thumb, private student loans cannot be consolidated along with federal (government) student loans. Different programs exist for each type of loan, so be sure to seek out the best options for both types of loans if available. The student loan consolidation process includes these steps:
Submit your application: The first step in consolidating, or even learning about consolidating, requires processing an application. This online process is fairly simple and requires you to provide basic information. Don't worry about obligations or fees. Just fill out the questionnaire, and consolidation companies will start the process.
Application begins: A private student loan debt consolidation specialist will contact you and go over your application. It's here that you'll provide your specific information, such as who your lenders are and how much you owe. The process is brief and will help you determine whether you are eligible. It's also here where you can find out about different programs that might be offered for your private loans.
Review your options: If you are eligible for consolidation, your application will be processed. You will receive a proposal outlining your options, including the repayment plan, how much your payment will be each month and how long the repayment plan lasts. This is when you decide to consolidate. Be sure to review the proposals and ask any questions you might have. It's up to you to make an educated decision and select the plan that best fits your goals.
Your creditors are paid: The end of the consolidation process arrives when your original lenders are paid. It's extremely important for you to monitor your mail and e-mail and make sure you keep making your monthly loan payments while you wait for the consolidation to be finalized. Your consolidator will notify you when the process is complete, and will explain how to pay your private consolidated loan.
Make a single payment! Now that you have only one loan to pay, the process is easy. Just send one check each month - or even better, pay online - and watch your debt disappear! Don't forget to read the tips about how to be a smart borrower.
